Republican Consulting

These 6 Boutique Lobbying Firms Are Expected to Have Double Digit Growth This Year

By Tess VandenDolder- 10/23/14

In the Capital

 

I recently reported that the lobbying industry has seen a big boom in the third quarter this year, thanks in large part to companies looking to increase their lobbying presence in anticipation of a post election power shift on Capitol Hill. While a number of large firms, we're talking the Akin Gumps and Patton Boggs on K Street, reported record earnings for the quarter, a number of smaller lobbying firms have also reported stellar growth, further proof of a larger trend of boutique firms bringing in big business.

 

Based on revenue numbers crunched by POLITICO Influence, six firms are expected to experience double digit revenue growth by the end of the year. What these six firms have in common is that they are all relatively small by lobbying industry standards, taking in less than $6 million in total revenue a year. But that doesn't make their growth any less impressive, particularly considering the declining revenue of the largest firms on K Street. Last year for example, Patton Boggs brought in the highest profits, finishing 2013 with a cool $40 million. This year Akin Gump is expected to be the leader, but with profits of only $35 million for the year.

 

This suggests that large firms are losing lucrative, big name clients to some of these smaller up and coming firms. Here's a look at the six boutique firms expected to have the most impressive growth in 2014, ranked by percentage of their revenue increase.

 

1. Thorn Run Partners – $5 Million in Projected 2014 Revenue

Relatively new on K Street, Thorn Run was founded by an ex-Hill staffer in 2010, this firm is on track to have a $1.3 million increase in their profit this year from 2013. Their biggest clients were in the pharmaceutical and health space, with Lundbeck Inc., the Greater New York Hospital Association, Novartis AG, and Takeda Pharmaceutical Company all having at least $100,000 contracts with the firm.

 

2. Crossroads Strategies – $5.4 Million in Projected 2014 Revenue

Crossroads Strategies is a beneficiary of the increase of Silicon Valley money on K Street. This year the firm enjoyed a $160,000 contract with Google, as well as having contracts worth at least $100,000 with some other big names including the National Rifle Association, AT&T, DirecTV and the leading tobacco company Altria.

 

3. Gephardt Group – $5.7 Million in Projected in 2014 Revenue

Founded by former House Majority Leader Richard Gephardt, the Gephardt Group has the largest contracts among these six growing firms, touting $220,000 contracts with American & Science Engineering Inc. and Peabody Energy. The firm also holds a $160,000 contract with Google, and a $120,000 contract with Boeing.

 

4. Republic Consulting – $2.2 Million in Projected 2014 Revenue

Republic Consulting is new to K Street, having only launched in 2013, but it does have former House Republican Whip Geoff Davis on the helm, which is certainly helping the firm's growth. They only have four current contracts worth more than $100,000, including the U.S. Chamber of Commerce and the National Cable and Telecommunications Association.

 

5. Daly Consulting Group – $1.5 Million in Projected 2014 Revenue

The smallest firm on this list, Daly Consulting Group was founded in 2012 by Justin Daly, former senior vice president for Ogilvy Government Relations. They only had nine clients this year, but did manage to win contracts worth $120,000 with Goldman Sachs and McGraw Hill Financial.

 

6. Shockey Scofield Solutions – $3.8 Million in Projected 2014 Revenue

Founded in 2011 by four lobbying veterans, Shockey Scofield Solutions has been making a killing in the defense space. So far this year they have taken in at least $100,000 from such defense industry giants as Boeing, General Dynamics and Northrup Gruman.

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